The Oklahoma Senate approved a proposal to legalize online sports betting on Tuesday by the slimmest of margins, and not without significant opposition.
Sen. Bill Coleman and Rep. Ken Luttrell’s SB 585 had a rollercoaster day in the full chamber on Tuesday, where bills need 25 votes to pass.
After the motion initially failed by getting only 24 votes in favor and 22 against, a motion to reconsider was approved 30-16. Senators ultimately passed the bill with 25 votes in favor and 15 against, while seven senators abstained from voting.
The legislation was officially engrossed on Wednesday and was sent for first reading in the House.
In SB 585, Coleman and Luttrell put forth a framework for the state that would allow Native American tribes to accept in-person bets and mobile bets on tribal land. The market would be regulated by the Oklahoma Horse Racing Commission.
Amendment gives license to Oklahoma City Thunder
An amendment made to the initial bill last month addressed what can happen off tribal land.
The commission would be authorized to issue one license to a professional sports team; specifically, to a pro team in the NBA. So, the Oklahoma City Thunder are in luck.
The Thunder would be able to contract with a tribal-approved mobile sportsbook. All gross gaming revenues generated from that license would be shared with all tribal entities that have entered into the state’s Model Tribal Gaming Compact.
Coleman estimates the state could make $20 million in annual tax revenue from the amended proposal, which would tax online sports betting at a relatively low rate of 10%.
The Thunder and the Oklahoma Indian Gaming Association (OIGA) will continue to negotiate on final terms as the House takes up the bill.
An unamended companion version of the bill has moved through committees in the House and is awaiting a reading on the floor of that chamber.
An attempt to appease Oklahoma Governor?
The provision to allow a Thunder-partnered sportsbook to offer online betting off tribal lands (albeit with tribal approval) could be an attempt to appease Gov. Kevin Stitt.
Stitt has been a vocal opponent of the idea of letting Oklahoma tribes hold exclusivity over sports betting.
At the end of February, Stitt stated he would “absolutely veto” any bills that reached his desk with a proposal to limit online sports wagering to tribal-only platforms. The governor said that would equate to a monopoly and argued that the state needs “more of a free market accountable system.”
“That’s not transparent, that’s not a fair deal,” he added. “They’re sovereign nations, they’re a separate government coming in and hiring lobbyists to come say what’s good for their nation, not what’s good for the taxpayers of Oklahoma.”
Luttrell’s own sports betting bills, HB 1047 and HB 1101, were both approved in the House and sent to the Senate this week. HB 1047 would legalize online sports betting with tribal exclusivity, and HB 1101 would put the issue to voters in a referendum if HB 1047 failed. Given Stitt’s comments, failure seems likely even if it gets through the Senate.
Stitt has maintained that his own plan, first proposed in 2023, is the best path forward. However, if Coleman and Luttrell’s amended proposal also gets the green light in the House, perhaps the Thunder provision will persuade him to sign off on the legislation and finally bring online sports betting to the state.
